As Congress faces a looming deadline on the debt ceiling, lawmakers are considering the Fiscal Responsibility Act (FRA). The package is the result of negotiations between House Speaker Kevin McCarthy (R-CA) and President Biden, and would suspend the debt ceiling through January 1, 2025 in exchange for several reforms and the reintroduction of discretionary spending limits.
According to the Congressional Budget Office’s analysis, the bill would reduce spending by $2.1 trillion through 2033. This figure includes savings of $188 billion on financing the federal debt.
To put it another way, if the reforms and spending limitations are adhered to over the next decade, this legislation would save $6,223 per person and $15,854 per household.
Lawmakers will have to find bipartisan agreement to maintain and build on these reforms and stay under the caps, while also working together to find ways to reduce wasteful spending to maximize savings for taxpayers.